1.Blue SpruceInc. operates in a province, where it is subject to GST of5%. In August,Blue Sprucepurchased $31,800of merchandise inventory, and had sales of $46,900on account.Blue Spruceuses a periodic inventory system.

a. Prepare the summary entry to record the purchases for August.

b. Prepare the summary entry to record sales for August.

c. Prepare the subsequent entry to record the payment of any GST owing to the Receiver General for Canada.

2.BrambleLtd., a private company following ASPE, is a merchant and operates in the province of Ontario, where the HST rate is13%.Brambleuses a perpetual inventory system. Transactions for the business for the month of March and April are as follows:

Mar.1Paid March rent to the landlord for the rental of a warehouse. The lease calls for monthly payments of $4,700plus13% HST.

3Sold merchandise on account and shipped merchandise to Marcus Ltd. for $15,800, terms n/30, f.o.b. shipping point. This merchandise costBramble$13,100.

5Granted Marcus a sales allowance of $800(exclusive of taxes) for defective merchandise purchased on March 3. No merchandise was returned.

7Purchased merchandise for resale on account from Tinney Ltd. at a list price of $2,700, plus applicable tax.

12Purchased a desk for the shipping clerk, and paid by cash. The price of the desk was $800before applicable tax.

Apr.15Paid the monthly remittance of HST to the Receiver General for Canada.

30Paid the monthly PST remittance to the Treasurer of the province (where applicable).

a. Prepare the journal entries to record these transactions on the books ofBrambleLtd.

b. Assume instead thatBrambleoperates in the province of Alberta, where PST is not applicable. GST is charged at the rate of5%. Prepare the journal entries to record these transactions on the books ofBramble.